ENTREVESTOR: Controversial Uber car service starts up in Halifax

The Uber car-for-hire service, now operating in Halifax, has faced opposition from taxi operators and regulators in other cities. (PETER PARSONS)

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Uber, a car-for-hire service that’s created controversy across the continent, has come to Halifax.

The San Francisco company announced Wednesday that it has launched its service in Halifax, so a fleet of drivers can now use its app to communicate with customers and accept payments.

Uber, which began five years ago, provides users with a smartphone app that takes their credit card number and connects them with a fleet of cars. When users need a car, the app shows a map of their immediate vicinity and outlines what cars are nearby. They can view the ratings of each driver as determined by previous users, order the car they want and watch its progress on the map. The rider doesn’t have to fumble for change at the end of the trip because the ride is paid for through the app and a receipt emailed out immediately.

“It’s great to see this spreading across to Halifax now,” said general manager Ian Black in an interview at the Atlantic Venture Forum in Halifax on Wednesday. “What’s important for us is to offer a high level of service to our customers.”

Uber offers taxi services in some cities and black car limousine services in others. For example, it offers both services in Toronto and just a taxi service in Montreal. Halifax will be its third Canadian city and will offer only the black car service at first.

In entering other markets, Uber has met with strong opposition from both taxi operators and those that regulate the industry. Reuters reported last year that Uber has faced licensing offences in Toronto, been declared illegal in New York, and served with cease-and-desist orders by regulators from California to Massachusetts.

The problem is that Uber either is a taxi service or performs many of the tasks of a taxi service, and taxis are a heavily regulated industry. Taxi operators usually require licences, so some jurisdictions have tried to have Uber behave like traditional taxi companies.

“The problem is that the laws weren’t written to account for technology that exists today,” said Black. “In most cities, taxis are a large and entrenched lobby group, so they pushed back.”

What many drivers have found over time, he said, is that Uber actually helps them because the service allows them to make more money. Riders also prefer it, he said, because it allows greater flexibility contacting, selecting, rating and paying drivers.

Uber began four years ago when founders Travis Kalanick and Calgary native Garrett Camp grew tired of waiting for cabs in San Francisco, so they developed a smartphone app that would improve the experience of ordering a cab. The company has since spread to 140 cities, notwithstanding the controversy. Black said the company has lined up a fleet of Halifax drivers — he wouldn’t say how many — and users can now download the app on Uber.com.